The Greater Chattanooga Realtors recently released their 2018 Annual Report on the local housing market, and 2018 was a very busy year.
The average sales price was nearly $223,000, which is a 5.5% increase over 2017 ($211,000).
This increase might reflect a decreased housing inventory. More than 10,000 homes were sold in the Greater Chattanooga area in 2018, which was a 1.9% increase over 2017 (9,826 homes).
Inventory dropped slightly from 2017. In 2017, there were approximately 3.3 months of inventory, while that amount dropped to 3.1 months in 2018. Maintaining a consistent housing inventory is critical, which is why Realtors continue to work with our elected officials to make sure homeownership remains attainable. and affordable for those in every income bracket.
The Days on Market (the average amount of time a property takes to sale) was 50 days. That is 15.3% faster than 2017, which was 59 days. Just to give some perspective, the average Days on Market for 2014 was 109 days. In other words, in 2014 houses took 54.1% longer to sell than in 2018. That’s a fast market!
For those who feel like they might’ve missed out on the chance to own a home, Lawrence Yun, the Chief Economist and Senior Vice President of Research for the National Association of Realtors® had some interesting insight in a recent interview. “The mortgage rate had been at 5%, and home sales in the latest month reflect those mortgage rates. The mortgage rate has dipped a bit to 4.5%, and it's giving a second chance opportunity for buyers, and some will take advantage,” said Yun.
When addressing predictions for 2019, Yun said that consumers should expect home sales to flatten and home prices to continue to increase, though at a slower pace. "The forecast for home sales will be very boring - meaning stable," said Yun.
2018 was a fast market, but the Greater Chattanooga Realtors worked tirelessly for their clients in a competitive market. No one can be sure what 2019 will mean for real estate, but the Greater Chattanooga Realtors will be prepared to assist their clients; no matter what how the market behaves.
For more information on the 2018 Annual Housing report, visit gcar.net/consumer-tools.